Distributors

Distributors of Food Products

Associated Challenges:

Market Access and Promotion	Smaller producers struggle to access international markets due to limited promotion and branding efforts. Expanding the promotion of Hawaii’s premium agricultural products and establishing unified marketing strategies is seen as a priority.
Cold Chain Management	Maintaining the cold chain is critical for export commodities like flowers, fruits, and seafood. The absence of adequate refrigerated facilities and inefficient cold chain logistics leads to higher post-harvest losses and reduced quality.
Limited Processing Infrastructure	There is a lack of local processing facilities for export crops, forcing producers to rely on off-island processing, which increases costs and risks. Investments in local processing facilities for macadamia nuts and coffee are essential.
High Transportation Costs	Hawaii's geographic isolation makes it difficult for producers to compete in international markets. High shipping costs and fuel prices significantly impact the profitability of crops like macadamia nuts, coffee, and floriculture.
Complex Food Safety Compliance	Small farmers face difficulties complying with the Food Safety Modernization Act (FSMA) and other food safety standards. The cost and complexity of compliance prevent many from accessing certain markets and limit their ability to scale.
High Transaction Costs for Small Farms	The lack of aggregation infrastructure leads to high transaction costs for buyers and processors when dealing with small farms, reducing the incentive to source from local smallholders.
Inadequate Aggregation and Processing Facilities	Hawaiʻi Island lacks sufficient aggregation and processing facilities, making it difficult for small-scale farmers to reach markets efficiently and profitably. This infrastructure gap exacerbates post-harvest loss and limits access to markets.

Distributors are critical to moving food products from producers to retailers, restaurants, and end consumers. In Hawai'i, distribution networks are challenged by the state’s remote location and the fragmented nature of its agricultural production. Distributors such as Hawaii FoodService Alliance and Y.Hata & Co. play a significant role in ensuring that local agricultural products reach both local and international markets. However, the high cost of transportation, particularly inter-island shipping, continues to pose a barrier to efficient distribution.

Staple Food Commodities

For staple food commodities, distribution networks are often hindered by the geographic isolation of producers, particularly on smaller islands, and the fragmented nature of the agricultural sector. Many small-scale producers struggle to meet the quantity and consistency requirements of larger distributors, limiting their access to broader markets. Additionally, the lack of cold chain infrastructure further complicates the distribution of perishable goods, resulting in higher rates of food waste and spoilage. Expanding food hubs, improving cold storage facilities, and increasing the efficiency of transportation services could help overcome these challenges and improve the flow of local foods to consumers across the state.

Export Commodities

Distributors of export commodities face similar logistical challenges but on a larger scale, particularly for products destined for international markets. High transportation costs, limited access to cold storage, and bottlenecks in the shipping process all reduce the efficiency and profitability of distributing export crops like coffee, macadamia nuts, and seafood. The export commodities value chain is heavily dependent on air freight, which is both costly and limited in capacity. Distributors emphasize the need for investment in infrastructure improvements, particularly in cold chain logistics, to ensure that high-value products maintain their quality throughout the distribution process. Addressing these challenges is critical for maintaining Hawai'i’s competitive edge in global markets.